Nasdaq gets pounded; Dow climbs

The Nasdaq composite index slumps for a third consecutive day, while the CNET tech index loses 98.86 to close at 3,391.37, dragged down by shares of eBay and Yahoo.

3 January 200212:43 am GMT

The Nasdaq composite index slumped for a third consecutive day, posting a drop of nearly 200 points that ranks as the third-largest point decline in the
index's history.

The Nasdaq sank 189.22, or nearly 4 percent, to 4,644.67,
and the Standard & Poor's 500 index rose a slim 0.79 to
1,508.52.

The Dow Jones industrial average climbed 82.61 to close at
11,018.72. Wal-Mart Stores led a retailer surge, rising $4.25 to $58.75.

Internet and other tech stocks posted broad losses. Mark Mobius, managing
director of Templeton Asset Management, called Internet stocks "dangerous
territory" and said companies he's seen in places as far away as Argentina
"have no earnings, no prospects of earnings, in the near future," the
financial cable channel CNBC reported.

The CNET tech index lost 98.86 to close at 3,391.37, dragged down by shares
of eBay and Yahoo.

Losers soundly thumped winners, with 82 of the 100 stocks in the index
falling, 16 rising and two remaining unchanged.

Intel fell $3.81 to $131.88. The company today introduced two Celeron
processors for budget computers that will kick off another cycle of
competition in the consumer PC market.

Microsoft climbed $2.88 to $107.19 as talks with the Justice Department over
its antitrust case appear to have stalled.

Yadkin Valley Bank and Trust was the biggest percentage gainer on the
Nasdaq Stock Market. The shares jumped $3.94, or 41 percent, to $13.50 after the bank
said it will increase its first-quarter dividend. Volume was a
paltry 33,800 shares.

Video equipment maker Hauppauge Digital was the Nasdaq's largest loser,
falling $18, or 46 percent, to $20.50 on a volume of 5.5 million shares.

Cisco Systems was the most actively traded stock on the Nasdaq, falling
$1.81 to $76.06 on volume of 54.7 million shares. Cisco today said
it will buy privately held
SightPath, which makes systems that deliver TV-quality video to
the Internet, for $800 million in stock.

Among members of the CNET tech index,
eBay and Yahoo posted significant losses.

eBay fell $24.81, or 11 percent, to $199. The company is closing some member
accounts and calling in federal officials after receiving more than 150
complaints about fraudulent
auctions.

Yahoo fell $17.94, or 9 percent, to $177.06. Three video game
companies have sued Yahoo over the alleged sale of illegal goods on its auction and
stores site.

Shares of Excite@Home rose $3.38 to $37.69 after recent decisions by AT&T,
the company's largest shareholder, to tighten its control over the
broadband portal and Net service. AT&T shares rose 56 cents to $60.44.

Analog Devices rose $4.75 to $86.25. An analyst at ABN Amro reiterated his
"buy" rating on the stock.

The Philadelphia semiconductor index lost a whopping 67.37, or 5 percent, to
close at 1,193.80. KLA-Tencor and Micron Technology led the drop. KLA fell
$7.19 to $77.81; Micron fell $13.50 to $127.

Shares of Akamai Technologies and Inktomi took large hits. Inktomi fell $23,
or 11 percent, to $182, while Akamai lost $29.88, or 14 percent, to $170.

Emulex continued its slide, falling $39.22, or 24 percent, to $121.69. The
stock has lost 37 percent of its value over the last two days after an
analyst at Morgan Keegan cut his rating on the stock.

Shares of Check Point Software plunged $40.75, or 20 percent, to $157.50 on
volume of 2.8 million shares--more than twice the stock's average daily
volume.

Shares of Seagate Technology and Veritas Software could post early moves
tomorrow. Veritas and an investment group led by Silver Lake Partners
announced today that they will acquire the assets of the storage
technology firm in a transaction valued at $20 billion.

Seagate shareholders will receive approximately half of one Veritas
share and $5 in cash for each Seagate share held, a total value of about
$77.50.

At the 1 p.m. PST close of regular trading today, Seagate shares were down
$5.44 at $62.75. Veritas shares fell $12.44 to $142.50. The transaction was
announced after the markets closed.